Bitcoin machines are not ATMs in the traditional sense and probably use the wording ATM as a neologism. Bitcoin kiosks are machines which are connected to the Internet, allowing the insertion of cash in exchange for bitcoins given as a paper receipt or by moving money to a public key on the blockchain.
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Don't expect a rush of coins to shoot out of a hatch like at the casinos. Bitcoins are all digital. A user can also get cash for his bitcoins at the ATM by scanning the mobile app containing the encrypted bitcoin balance. The machine will then dispense the amount of cash requested. If a Bitcoin ATM machine has full featured verification turned on, it can make it tough to make an anonymous purchase.